Stock incentive plan and stock-based compensation

3 Months Ended

Mar. 31, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 7. Stock incentive plan and stock–based compensation

Stock incentive plan

The Company’s board of directors established the 2012 Stock Incentive Plan (the “Plan”) on April 15, 2012, and the Company’s shareholders ratified the Plan at the annual meeting of the Company’s stockholders on May 30, 2012. The Company has 415,000 shares of Common Stock that are reserved to grant Options, Stock Awards and Performance Shares (collectively the “Awards”) to “Participants” under the Plan. The Plan is administered by the board of directors or the Compensation Committee of the board of directors, which determines the individuals to whom awards shall be granted as well as the type, terms and conditions of each award, the option price and the duration of each award.

Options granted under the Plan vest as determined by the Company’s Compensation and Nominations Committee and expire over varying terms, but not more than seven years from date of grant. In the case of an Incentive Stock Option that is granted to a 10% shareholder on the date of grant, such Option shall not be exercisable after the expiration of five years from the date of grant. No option grants were issued during the three months ended March 31, 2015, and 2014.

Issuance of restricted shares – directors, officers and employees

A summary of the Company’s employee’s restricted stock as of March 31, 2015, is presented below:

	Number of shares		Weighted average grant date fair value
Non–vested at January 1, 2015		110,000	$	1.42
Granted		55,000		0.56
Vested		(41,000)		0.83
Forfeited		(28,000)		1.99
Non–vested at March 31, 2015		96,000	$	1.01

For the three months ended March 31, 2015, the Company has recorded $32 (2014: $123) in employee and director stock–based compensation expense, which is a component of selling, general and administrative expense in the condensed Consolidated Statement of Operations. 

On January 28, 2015, 30,000 restricted shares were granted and issued to a certain employee with an aggregated fair value of $16. The shares vest one–third every six month from the date of issue.

On January 28, 2015, 25,000 restricted shares were granted and issued to a certain employee with an aggregated fair value of $13. 10,000 shares vested on January 30, 2015, the remaining shares vest one–half on April 16 and October 16, 2015, respectively.

Unrecognized compensation cost

As of March 31, 2015, unrecognized compensation costs related to non–vested stock–based compensation arrangements was $61 (2014: $283), and is expected to be recognized over a weighted average period of 0.77 (2014: 0.78) years.

Stock–based compensation – non–employees

For the three months ended March 31, 2014, the Company granted and issued a total of 103,607 shares to non-employees for services rendered. The shares were fully vested and recorded at $62 using the closing market value on respective dates of issuance. 

Subsequent to March 31, 2015, and through the date of filing the Quarterly Report on Form 10–Q, the Company granted and issued a total of 45,095 shares to non-employees for services rendered. The shares were recorded at $23 using the closing market value on respective dates of issuance.

Warrants

As of March 31, 2015 the Company had 1,020,825 warrants outstanding at weighted average exercise price of $3.47, and an intrinsic value of $nil.

As of March 31, 2015, all issued warrants are exercisable and expire through 2018.